Revenue expanded 8.92 percent to NT$1.11 billion (US$3.71 million) last month, from NT$1.02 billion in April, marking the eighth month of growth, according to a company statement. That was an annual decline of 16.75 percent from NT$1.34 billion.

“Neo Solar receives quite good orders for solar cells and solar panels. Order visibility affects the third quarter,” Neo Solar said in the statement. “The company expects a significant upside in revenue this month after it completed the acquisition of DelSolar Co (旺能光電) on May 31.”

Neo Solar did not say if solar panel disputes between China and EU caused the increase in demand.

Analysts said local solar cell makers were the biggest beneficiaries of a EU-China trade row as Chinese solar companies have been placing orders with local companies to get around a tax which could be implemented after the EU concludes an anti-dumping and anti-subsidy probe.

Based on the latest decision by the European Commission, it would impose 11.8 percent import tax on solar cells and modules from China by August and the tax could soar to 47 percent afterward.

“This news acts as a positive catalyst to Taiwan’s solar makers on the belief that their clients will continue to relocate their orders,” Richard Hsia (夏武正), an analyst with Fubon Securities Co (富邦證券), said in a research note yesterday.

He retained his “positive” rating on local solar cell makers such as Neo Solar, Motech Industries Inc (茂迪) and Gintech Energy Corp (昱晶能源).

However, Yuanta Securities Co (元大證券) analyst Felix Hsu (徐凰原) said the ruling was less severe than local solar companies have thought.

The EU ruling could diversely impact the share price of local solar companies. Hsu said.